The region of economies of scale is that in which:
a. short-run marginal cost is falling as output expands
b. short-run average total cost is falling as output expands.
c. long-run marginal cost is falling as output expands.
d. long-run average total cost is falling as output expands.
d
You might also like to view...
The term "stagflation" is used to define an economic situation where there are adverse supply shocks which cause a fall in output but with increasing price level
Indicate whether the statement is true or false
What does a Lorenz curve illustrate?
A) the change over time in the percentage of households with incomes that place them below the poverty line B) the share of taxes paid by different groups of households C) the distribution of income within a country in a given time period D) a comparison of the distribution of income in two different countries
Suppose a perfectly competitive firm is producing 1,000 units of output and the marginal cost of the 1,000th unit is $7. If the firm can sell each unit of output for $7 and the firm's revenue is sufficient to cover its variable cost, the firm should:
A. leave production unchanged. B. decrease production to lower losses. C. increase price to increase profits. D. increase production to increase profits.
If we have a stock selling for $95.00 and a call option for this stock has a strike price of $82.00 and an option price of $13.60:
A. the intrinsic value is $0 since the option is out of the money. B. the intrinsic value of the option is $13.00 and the time value of the option is $0.60. C. the intrinsic value is $82.00 and the time value of the option is $13.60. D. the intrinsic value of the option is $0.60 and the time value of the option is $13.00.